DryShips Q2 Earnings Beat Estimates

DryShips (DRYS) earnings beat estimates. Though revenues were down but were still higher than “Analysts’” expectation.  At OPNewsletter, we played this for earnings as “speculative play”

DRYS is announcing earning after market close..you may want to pick a few Sept 7.5 calls purely for “speculative reasons”. The chances of making money in a earning driven event are at best 50/50 and therefore don’t spend more than what you can afford to lose 100% and sleep well.

More details about the report (Briefing)- DRYS reports second quarter (Jun) earnings of $0.25 per share, excluding non-recurring items, $0.04 better than the First Call consensus of $0.21. Revenue fell 30.5% year-over-year to $210.5 million versus the $204.1 million consensus. Company reported Q209 avg number of vessels at 37.3 at a daily rate of $29,752 per day versus 38.5 at $70,701 per day in the prior year’s quarter. For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) decreased by $145.1 million to $99.9 million for the three-month period ended June 30, 2009, as compared to $245.0 million for the three-month period ended June 30, 2008. The decrease is attributable to the substantially lower freight market during the three-month period ended June 30, 2009 as compared to the second quarter of 2008.

I also played FSLR for a range that should make it profitable in case FSLR stays between 160/185. As per pre-market moves, it does seems to be well within the range.

Another interesting to note in yesterday’s market was its apparent character change from last hour rallies to sell-off. In fact, that too on increased volume. Call it sheer luck or “intuition” that I anticipated this when I wrote the following to OPNewsletter members-

Call me the most skeptic person u have ever read but guess what..market have been demonstrating wonderful strength in the last few hours of trading for the past several days…will today be the first day for surprise (i.e. downward move in the last few hours)…no no..i am not a bear….this is game of unexpected…isn’t it Undecided?

don’t take the above thought for it words, have fun..I just sometime play surprises (for speculations) with very minimal capital..

Dow dropped almost 80 points in the last trading hour. We shall see if this was a one day wonder of it has more changes on the way. A follow through below immediate short-term support levels on continued strong volume would suggest at least a temporary market top is in place and lower prices are likely in the days ahead.

For the time being, enjoy the bull run.

Profitable Trading, OP







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